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Payroll for Cannabis Businesses
Understanding cannabis payroll and the best payroll providers for cannabis businesses
Robert Baron
October 05, 2022
Payroll for Cannabis Businesses
As the cannabis industry continues to grow, so does the need for businesses to understand the complexities of payroll. Payroll for cannabis businesses is a unique challenge, as the industry is still in its infancy, and there are many regulations and laws that must be followed.
The first step in managing payroll for a cannabis business is to understand the laws and regulations that apply to the industry. Cannabis businesses must comply with both federal and state laws, as well as any local ordinances. It is essential to understand the differences between the two, as they can significantly impact how payroll is managed.
Once the laws and regulations are understood, the next step is to set up a payroll system compliant with all applicable laws. It needs to track employee hours, wages, and taxes accurately. Additionally, employers must ensure that all employees are paid on time, per applicable laws.
In addition to setting up a compliant payroll system, employers must also ensure that they comply with all applicable labor laws. This includes ensuring that employees are paid the minimum wage, overtime pay, and other benefits as required by law. Additionally, employers must ensure that they comply with any applicable collective bargaining agreements or union contracts.
Finally, employers must ensure that they comply with applicable tax laws. This includes filing all required tax forms and paying any applicable taxes on time. Additionally, employers must ensure that they are withholding the correct amount of taxes from employee paychecks.
Payroll for cannabis businesses can be a complex process, but companies need to understand the laws and regulations that apply to their industry. By understanding these laws and regulations, employers can ensure that they comply with all applicable laws and that their employees are paid correctly and on time.
Payroll Provider for Cannabis Dispensaries
As the cannabis industry continues to grow, so does the need for reliable payroll services. With the industry's increasing complexity, it is important for cannabis dispensaries to find a payroll provider that can meet their unique needs.
Fortunately, several top payroll providers specialize in providing services to cannabis dispensaries. These providers offer a variety of features and services, including payroll processing, tax filing, and employee management. Here are some of the top nationwide payroll services for cannabis dispensaries:
ADP: ADP is one of the most popular payroll providers. They offer a comprehensive suite of services, including payroll processing, tax filing, and employee management.
As of this article (and to our knowledge), ADP does not allow cannabis.
Gusto: Gusto is a cloud-based payroll provider that offers a variety of features specifically designed for cannabis dispensaries. These features include compliance with state and federal regulations, automated payroll processing, and employee management. Gusto also offers a range of additional features, such as time tracking and direct deposit.
From our experience, Gusto is great for very small operations, but has limited functionality as employers grow.
Intuit QuickBooks: Intuit QuickBooks is another popular payroll provider for cannabis dispensaries. They offer a variety of features, including payroll processing, tax filing, and employee management. Intuit QuickBooks also offers a range of features specifically designed for cannabis dispensaries, such as compliance with state and federal regulations and automated payroll processing.
As of this article (and to our knowledge), Intuit does not allow cannabis.
Paychex: Paychex is another popular payroll provider for cannabis dispensaries. They offer a variety of features, including payroll processing, tax filing, and employee management. Paychex also offers a range of features specifically designed for cannabis dispensaries, such as compliance with state and federal regulations and automated payroll processing.
Paychex is our preferred choice for cannabis payroll provider.
These are just a few of the top payroll providers for cannabis dispensaries. When choosing a provider, it is important to consider your specific needs and budget. Each provider offers different features and services, so it is important to do your research before making a decision. With the right provider, you can ensure that your dispensary's payroll needs are met efficiently and accurately.
Understanding Cannabis Payroll
If you're a business owner in the cannabis industry, you know that understanding payroll is essential to running a successful business. Payroll is the process of calculating and distributing wages and other employee benefits, and it's important to get it right.
Cannabis payroll is a bit different from traditional payroll, as there are unique regulations and laws that must be followed. For example, many states require cannabis businesses to pay employees in cash, as banks are not allowed to handle money from the cannabis industry. Additionally, cannabis businesses must comply with state and federal labor laws, such as minimum wage and overtime requirements.
When it comes to calculating payroll, cannabis businesses must take into account the unique tax implications of the industry. For example, cannabis businesses must pay taxes on employee wages, as well as any other benefits they provide. Additionally, employers must withhold taxes from employee wages and pay them to the appropriate government agencies.
Finally, cannabis businesses must ensure that their payroll systems are secure and compliant with all applicable laws and regulations. This includes ensuring that employee data is kept confidential and secure and that all payroll information is accurate and up-to-date.
Understanding cannabis payroll services can be a daunting task, but it's essential for any business in the industry. By following the appropriate laws and regulations, businesses can ensure that their payroll systems are secure and compliant and that their employees are paid accurately and on time.
Payroll Industry Resources & Best Practices
Best Practices for Employers Using a Payroll Service
All employers should regularly login into the federal EFTPS system and EDD online to reconcile tax deposits made on your behalf to the amounts deducted from your bank account.
Resources for Employers
If things aren’t done right, the employer still owes and if the employer doesn’t pay, the IRS goes after owners and employees individually.